Sports & Entertainment Tax Advisor
The Sports and Entertainment industries present unusual Tax challenges. Athletes and Entertainers often find themselves in Tax Problems for the four (4) following reasons;
1. Shady Financial Consultants
Financial oversight is important to every business, if you are an athlete or entertainer you must understand that you are also a business . If you trust the wrong people to handle your money or to give you financial advice, you will end up in big trouble.
The wrong people in the financial world can be friends, family, incompetent business managers, and shady financial consultants. These white collar criminals will steal your money, leaving you nothing to pay your taxes with.
2. Red Flag Incomes
Celebrities have a large IRS spotlight on them. The combination of a high profile and a high income is the perfect equation for an IRS audit. The IRS will continue to more aggressively pursue high-profile cases of suspected tax avoidance or evasion. Basically the IRS knows it can make an example out of celebrities.
3. Inconsistent Pay Days
Celebrities have big pay days, but they are not always consistent. Most people in the U.S. are wage earners who get regular checks once a week or once every two weeks. That's not the case for celebrities. With out the proper tax planning celebrities end up spending most of their money and not saving enough to pay for taxes.
4. No Payroll Deductions
Unlike the average W-2 employee, celebrities don't have taxes automatically taken out of their paychecks. This is the reality for all small business owners and entrepreneurs.
If the typical U.S. worker didn't have taxes automatically taken out his or her paycheck most people would wind up in trouble with the IRS too.
If you are in the Sports & Entertainment industry and need Tax Help call Accountant Jayson M. Thornton 314-394-8588